Composition, sources and methods of increase. Ways to increase the equity capital of an organization

Improving the economic activity of Profis LLC

Increasing the company's own capital

One of the first methods to improve the financial condition of an enterprise is to increase its own capital in order to increase the financial independence of the enterprise.

The optimal share of equity for the organization was obtained in such a way that the equity ratio, which is used in particular in the methodology of the Federal Office for Insolvency (Bankruptcy) (approved by order of September 12, 1994 N 56-r), complies with the norm ( but in any case not less than 45% of the total capital). This ratio should be taken as a guide, since it imposes the most stringent regulatory requirements on the amount of equity capital of organizations. The minimum recommended share of equity capital is taken on the basis that the organization's equity capital covers at least 90% of the book value of all non-current assets. With the specified minimum share of equity capital, the financial independence of the organization will remain satisfactory, but some financial ratios, in particular the equity ratio, will be below the established standards. In addition to the optimal and minimum share of equity, there is a limit beyond which the share of equity is considered excessive, which hinders the development of the company by attracting borrowed capital. Typically, for non-capital-intensive industries, this limit is 70%.

The main source of equity capital growth of the company is net profit. In addition, it is possible to increase the equity capital of the organization as a result of the following operations:

a) revaluation of fixed assets in the direction of increasing their book (residual) value. A commercial organization may not more than once a year (at the beginning of the reporting year) revaluate groups of homogeneous fixed assets at their current (replacement) cost. When deciding on the revaluation of such fixed assets, it should be taken into account that they are subsequently revalued regularly. The revaluation is carried out on the first day of the reporting year and its results will appear in the balance sheet only in the reporting year (and not at the end of the previous year). In addition, it should be taken into account that an increase in the residual value of fixed assets leads to an increase in corporate property tax, but is not included in the income tax base.
b) an increase in the authorized capital.
c) the contribution of the founders to the property of the company (without changing the authorized capital). This option does not imply a return on investment (such as a loan). According to paragraphs. 3.4 p. 1 art. 251 of the Tax Code of the Russian Federation, funds contributed by a participant or shareholder to increase net assets are not subject to income tax. It is better to use money as a contribution, not property, so that the transferring party (if it is an organization and not an individual) does not have a VAT base from the gratuitous transfer of property.

At Profis LLC, the share of equity at the end of the analyzed period was 40.9%, which means financing of the company's property by 41% with equity, the remaining 59% are borrowed sources.

An increase in the authorized capital of an LLC can be carried out in connection with:

- Lack of working capital. The funds contributed to the Authorized Capital of the Company can be used for any financial and economic needs of the enterprise and, in addition, contributions to the Authorized Capital are not subject to taxes such as value added tax and income tax upon receipt of gratuitous funds.
- licensing requirements. To obtain certain licenses and permits to conduct activities, the legislator has established certain requirements for the size of the authorized capital.
- the entry of a third party into the Membership of the Company. By making an additional contribution to the authorized capital in this way, a third party acquires the rights and obligations of a member of the Company.

Not every Company can increase its authorized capital. At the time of the decision to increase the authorized capital, the following conditions must be met:

- fully paid initial authorized capital, even if one year (provided by the Foundation Agreement or the decision on foundation) has not passed since the moment of state registration. In this case, the founders simply need to pay off their debt on payment of the authorized capital;
- the amount by which the authorized capital is increased at the expense of the Company's property must not exceed the difference between the value of the company's net assets and the amount of the authorized capital and reserve fund of the company;
- at the end of the second and each subsequent financial year, the value of the Company's net assets must not be less than its Authorized Capital. Otherwise, the Company is generally obliged to announce the reduction of its authorized capital to an amount not exceeding the value of its net assets, and register such a decrease;
- at the end of the second and each subsequent financial year, the value of the Company's net assets must not be less than the minimum authorized capital established at the time of the Company's state registration. Otherwise, the Company is subject to liquidation.

To what extent can the authorized capital be increased? There are no restrictions in the legislation on the maximum size of the authorized capital of a Limited Liability Company. In some cases, it may be necessary to obtain permission or notification from the competition authority. For example, when a third party acquires a share in the authorized capital of the Company, giving, together with the available votes, more than 20% of the votes at the General Meeting of Participants, or when transferring property as a contribution to the authorized capital, amounting to more than 10% of the book value of fixed production assets and intangible assets transferring person.

An increase in the authorized capital of an LLC can be carried out:

- at the expense of the Company's property;
- by making additional contributions of the Company's members;
- at the expense of deposits of third parties accepted by the Company.

Thus, LLC "Profis" can expand the circle of founders, thereby increasing the authorized capital at the expense of the contribution of a new member of the company. The amount of the contribution of a new member of the company will be 10 thousand rubles.

Increase in additional capital.

Additional capital can be considered part of the company's own capital. More precisely, it is the added or additional capital.

It is believed that the authorized capital should be reflected in the accounting registers for the amount that was formed during the creation of the enterprise and included in the constituent documents, i.e. when changing the authorized capital, changes must also be made to the constituent documents. The consequence of such a tough approach was the emergence of such a balance sheet item as additional capital.

Accordingly, account 83 “Additional capital” arose for the same reason that account 80 “Authorized capital” must always show exactly the registered amount of the authorized capital specified in the charter. If there were no this requirement, then there would be no account 83 "Additional capital". All the facts of economic life associated with the capital of the enterprise would be reflected in account 80 "Authorized capital".

At present, account 83 "Additional capital" is an additional account to account 80 "Authorized capital", which regulates records of changes in capital. And more precisely, here there is a refinement of the valuation of the property made as an initial contribution.

There is no revaluation of fixed assets at the enterprise, and given that the cost of fixed assets available on the balance sheet of Profis LLC is quite high, it is worth revaluing it.

At the moment, on the balance sheet of Profis LLC there is a room worth 4,322 thousand rubles. which has not been revalued since 2008.

Accounting records for revaluation accounting depend on whether the object was previously revalued or this revaluation is the first for it.

If the object has not been revalued before (first revaluation), then:

- the amount of the revaluation is attributed to additional capital;
- amount of markdown - for undistributed profit/uncovered loss.

During the period from 2008 to the present, the cost of this premises has changed under the influence of the inflation factor and the increasing wear and tear of the building.

In table 3.1, we consider the dynamics of inflation and other factors affecting the value of real estate in Komsomolsk-on-Amur for 2008-2014.

Table 3.1 - Dynamics of the inflation rate and other factors of changes in the market value of real estate in the city of Komsomolsk-on-Amur

Revaluation period	Inflation, %	Other factors, %	General multiplier, %

Figure 3.1 - Dynamics of the inflation rate for 2008-2014

As Figure 3.1 shows, inflation peaked in Russia in 2009. In accordance with changes in the value of the property, it is necessary to conduct an annual revaluation of the real estate of Profis LLC in accordance with the factors presented above.

The dynamics of the value of property due to its appreciation is presented in Table 3.2.

Table 3.2 - Dynamics of property value under the influence of market factors

Revaluation period	Inflation	Other factors, %	Common multiplier	Property value, thousand rubles	Increase in cost, thousand rubles

Thus, by the end of 2014, the nominal value of the property increased almost 2 times, from 4,322 thousand rubles. up to 8,361.2 thousand rubles When revaluing property, the depreciation factor should be taken into account.

Figure 3.2 - Change in the nominal value of property

According to the regulatory documents for the registration of a real estate object, the amount of annual depreciation is determined in the amount of 3.5% of the current value of the property.

Thus, we will make a revaluation of the property, taking into account the increase in its current value and depreciation.

Table 3.3 - Revaluation of the property for 2008-2014

Revaluation period	Increase in cost, thousand rubles	Amount of depreciation, thousand rubles	Residual value, thousand rubles

Thus, during the revaluation of fixed assets, the positive difference (revaluation amount) in the amount of 2,424.8 thousand rubles will be attributed to the additional capital of Profis LLC.

The increase in the equity capital of Profis LLC due to an increase in the authorized capital will amount to 10 thousand rubles, in the event of an increase in additional capital - 2,424.8 thousand rubles.

The total increase in the equity capital of Profis LLC will amount to 2,434.8 thousand rubles.

The economic effect of the proposed measure will be expressed in the growth of the organization's own capital in the amount of 2,434.8 thousand rubles, and the economic efficiency (relative measurement of the economic effect) will be 57.86%, which is quite effective.

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How to increase the share of equity capital?

Service Analyst Expert Ekaterina Karsakova recommends the following operations to increase the share of equity capital:

revaluation of fixed assets - revaluation of a group of homogeneous fixed assets at current (replacement) cost is carried out no more than once a year. It is made on the first day of the reporting year, and its results are fixed in the balance sheet only in the reporting year (and not at the end of the previous year). It should be noted that an increase in the residual value of fixed assets leads to an increase in corporate property tax, but is not included in the income tax base.
increase the authorized capital;
contributions of the founders to the property of the company - are made without changing the authorized capital. In this case, the return of invested funds (for example, a loan) is not expected, and the funds contributed by a participant or shareholder to increase net assets are not subject to income tax (clause 3.4, clause 1, article 251 of the Tax Code of the Russian Federation). It is better to use money as a contribution, not property, so that the transferring party (if it is an organization and not an individual) does not have a VAT base from the gratuitous transfer of property.

Don't forget that there is a concept of maximum share of equity, and an excessive share of capital can be harmful to your business.

In order to track the dynamics of changes in the share of equity capital, you can use the Expert service from SKB Kontur. You will be able to regularly receive up-to-date reports on the financial condition of the enterprise, identify the likelihood of an on-site tax audit, the possibility of bankruptcy and the level of creditworthiness. With the help of individual business improvement tips, the Expert will tell you what steps need to be taken to improve the company's financial performance and increase profits.

You can learn more about the service on the Expert website or by calling a free service consultant at 8 800 500-88-93.

To improve the financial condition and improve the organization of the equity capital of Wimm-Bill-Dann OJSC, the following ways of accelerating capital turnover can be used:

1) reducing the duration of the production cycle due to the intensification of production (using the latest technologies, mechanization and automation of production processes, increasing the level of labor productivity, more complete use of the production capacity of the organization, labor and material resources, etc.);
2) improving the organization of material and technical supply in order to ensure the uninterrupted supply of production with the necessary material resources and reduce the time spent by capital in stocks;
3) acceleration of the process of shipment of products and registration of settlement documents;
4) reducing the time spent in accounts receivable;
5) increasing the level of marketing research aimed at accelerating the promotion of goods from the manufacturer to the consumer (including market research, improving the product and the forms of its promotion to the consumer, forming the correct pricing policy, organizing effective advertising, etc.);
6) an increase in the authorized capital of the company in order to increase its financial guarantees;
7) the creation of a larger reserve fund, as well as the improvement of its accounting and reflection in the balance sheet.

As the data of the conducted analysis show, the actual increase in own capital for the period under study was insufficient to provide the enterprise's reserves with its own sources.

An increase in equity capital can be carried out as a result of the accumulation or conservation of retained earnings for the purposes of the main activity with a significant restriction on its use for non-productive purposes, as well as as a result of the distribution of net profit to reserve funds formed in accordance with the constituent documents.

The authorized capital can be increased either through an additional issue of shares, or without attracting additional investments. The latter option is possible only within the amount of retained earnings. This can be done in the following way: increase the par value of previously issued shares, with the obligatory withdrawal of old ones from circulation, or issue new, additional shares.

We can propose the following principles for the formation of the equity capital of Wimm-Bill-Dann OJSC:

- Accounting for the prospects for the development of the economic activity of this organization. The process of forming the volume and structure of capital is subject to the tasks of ensuring its economic activity not only at the initial stage, but also during the continuation and expansion of this activity in the future. Ensuring prospects is achieved by including all calculations related to the formation of capital in the business plan for creating a new enterprise.
- Ensuring that the volume of attracted capital corresponds to the volume of the formed assets of the organization. The total capital requirement is based on the need for current and non-current assets.
- Ensuring the optimal structure of capital from the position of its effective functioning. The capital structure is the ratio of own and borrowed funds used in the activities of the enterprise. The use of borrowed capital raises the financial potential of the organization's development and provides an opportunity to increase the financial profitability of activities, however, it generates financial risk to a greater extent.
- Ensuring the minimization of costs for the formation of capital from various sources. Such minimization is carried out in the process of managing the cost of capital, which is understood as the price paid by the enterprise for its attraction from various sources.
- Ensuring highly efficient use of capital in the process of its economic activity. The implementation of this principle is ensured by maximizing the return on equity at an acceptable level of financial risk for the organization.

The structure of funding sources is characterized by the share of own, borrowed and attracted capital in its total volume. When forming the capital structure, as a rule, many Russian organizations determine the share of equity and debt capital. The evaluation of this structure is very important. The risk will be minimal for those organizations that build their activities mainly on their own capital, but the profitability of such organizations is low, since the efficiency of using borrowed capital in most cases turns out to be higher. The following ratio is considered the best option for the formation of an organization's finances: the share of equity capital should be greater than or equal to 60%, and the share of borrowed capital should be less than or equal to 40%.

To improve the financial performance of reporting (financial stability), the company needs to have its own working capital. One of the ways to increase own working capital is to increase the authorized capital of the company.

The increase in the authorized capital of the company, first of all, leads to an increase in its financial independence.

How an increase in authorized capital affects the financial performance of reporting

In the practice of financial analysis, the calculation of the autonomy coefficient is used, which characterizes the company's independence from borrowing.

In a generalized form, the calculation of this coefficient can be represented by the formula:

Independence Ratio = Equity / Assets.

If we use the balance sheet indicators, then the formula will look like:

Independence ratio = line 1300 (section III "Capital and reserves") / line 1600 (balance currency).

Accordingly, the higher the value of this indicator, the more financially independent the company is from external debt obligations.

When analyzing international reporting, the indicator of the coefficient of financial dependence is used, which is the opposite of the indicator of the autonomy coefficient, showing the ratio of the structure of equity and borrowed capital.

In the event that the company is acutely experiencing a shortage of its own working capital for doing business, and the balance sheet structure does not allow attracting potential investors, obtaining bank loans and other external borrowings, the company may decide to increase the authorized capital.

Ways to increase the authorized capital

So, the company decided to increase the authorized capital. In what ways can this be done?

It is possible to increase the authorized capital at the expense of the company's property, and (or) at the expense of additional contributions from the company's participants, and (or) at the expense of contributions from third parties accepted into the company (if this is not prohibited by the Charter).

Let us briefly outline the procedural aspects of the last two ways to increase the authorized capital.

Increase in authorized capital at the expense of contributions from third parties

Stage 3. Adoption by the general meeting of participants of a decision to increase the authorized capital (based on the application of a third party or applications of third parties to accept him or them into the company).

The decision is made only by those participants, information about which as participants is available in the Unified State Register of Legal Entities at the time of making such a decision.

Stage 4. Making decisions (simultaneously with the decision to increase the authorized capital and make a contribution) on the inclusion of third parties in the company, on making changes to the company's charter (due to an increase in the authorized capital), on determining the nominal value and size of the share of a third party, as well as on changing the size of the shares of the participants in the company.

Such decisions are taken by all members of the company unanimously.

At the same time, the nominal value of the share acquired by each third person admitted to the company must not exceed the value of his contribution.

The deadline for making additional contributions to the charter capital of the company by third parties is no later than six months from the date the decision was taken by the general meeting.

For third parties, changes to the company's charter become effective from the moment of their state registration. If third parties do not comply with the deadlines for making additional contributions, then the increase in the authorized capital is recognized as failed.

Increase in the authorized capital due to additional contributions of the company's participants

Stage 1. Notification of the company's participants about the holding of the general meeting of participants.

Stage 2. Holding a meeting of members of the company.

The general meeting of the company's participants is held in accordance with the procedure established by the charter of the company and its internal documents.

Stage 3. Adoption by the general meeting of participants of the decision to increase the authorized capital at the expense of additional contributions of its participants.

The decision to increase the authorized capital is made by a majority of at least 2/3 of the total number of votes of the company's participants, unless the need for a larger number of votes to make such a decision is provided for by the company's charter.

The term for making additional contributions of participants to the authorized capital of the company is within two months from the date the company makes the appropriate decision (unless a different period is established by the company's charter or decision).

Stage 4. Making decisions (no later than one month from the date of the expiration of the period for making additional contributions) on the approval of the results of making additional contributions and on introducing amendments to the company's charter related to an increase in the size of the authorized capital.

At the same time, the additional contribution of each participant should not exceed the part of the total value of additional contributions proportional to the size of its share in the authorized capital of the company.

for example

The size of the authorized capital of the company is 50,000 rubles. The share of the first participant is 10% (5,000 rubles), the second participant is 90% (45,000 rubles). At the general meeting of participants, it was decided to increase the authorized capital by 2 times, i.e. for 50,000 rubles. Each of the two participants in the company has the right to make an additional contribution in proportion to its share in the authorized capital, i.e.:

1 participant - 50,000 rubles. x 10% = 5,000 rubles;

2 participant - 50,000 rubles. x 90% = 45,000 rubles.

That is, the amount by which the nominal value of the share will increase:

for 1 participant - 5,000 rubles;

for 2 participants - 45,000 rubles.

Stage 5 State registration of changes in connection with an increase in the authorized capital.